The Reserve Bank of New Zealand is widely expected to cut its official cash rate by 25 basis points to 3% at its policy meeting on August 20, as easing inflation and a softening labour market bolster the case for further stimulus.A Reuters poll conducted August 11–14 found 28 of 30 economists forecasting the move, with just two expecting no change. The central bank last held rates at 3.25% in July, flagging a readiness to ease if inflation stayed in check. Annual inflation slowed to 2.7% in the June quarter — within the RBNZ’s 1–3% target range — while the jobless rate rose to 5.2%, the highest since late 2020.Economists see next week’s cut as part of the final phase of the RBNZ’s easing cycle, though expectations for the terminal rate vary. ASB and Westpac expect no further cuts after August, while BNZ tips a move to 2.75% by end-2025 and ANZ and Kiwibank forecast 2.50% next year. The median forecast points to an additional cut to 2.75% in Q1 2026, slightly earlier than predicted in July. This article was written by Eamonn Sheridan at investinglive.com.